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Copyright © 2001 Eastern Ontario Farmers Forum Inc. All Rights Reserved

My $100,000 loss due to mad cow

VANKLEEK HILL — The mad cow crisis is a $100,000 problem for Allan Simpson.

The Vankleek Hill dairy farmer has contracts, as he had last year, to sell 100 Holstein heifers to American buyers. But when the border closed because of one case of mad cow in Alberta, Simpson’s contracts were worthless and he slowly watched his profits and then his investment slip away.

Based on last year’s price of $2,100 for each heifer he sold to the United States, he was forced recently to sell his 30 cows locally, earning $1,100 each. At that price, he is facing a $100,000 loss of revenue as he tries to sell the other animals for less than what he paid for them.

Simpson expects the U.S. border will be fully open in three years unless the federal government kisses some American butt. Meantime, if no more funding is not available for farmers, "I’ll simply go out of business," he said matter-of-factly.

About 70,000 female dairy calves are raised each year in Ontario as replacement heifers for the American market, says Simpson. "They represent $140 million per year income to Ontario farms and communities."

Even more replacement heifers are produced in Quebec, he added.